Average Apartment Sale and Jeonse Prices Nationwide Rise Together for the First Time in 14 Months

The average apartment sale price and average jeonse price nationwide both rose simultaneously for the first time in 14 months. In particular, the increase in average sale and jeonse prices of apartments in Seoul was led by the Gangnam area.

[Image source=Yonhap News]

According to a survey by KB Kookmin Bank on the 31st, the average apartment sale price nationwide this month was 496.44 million KRW, marking the first increase in 14 months since June last year (561.84 million KRW). The average apartment sale price nationwide had been declining for 13 consecutive months since July last year, when it was 560.83 million KRW.

The price drop was due to weakened buying demand following last year's interest rate hikes, but prices rose this year after the quick-sale properties were exhausted and asking prices increased. However, the price recovery has not reached the level of the peak average price in June last year, as it remains more than 65 million KRW lower.

By region, the average apartment sale price in Seoul was 1.18519 billion KRW, rising for the first time since KB revised its survey sample in November last year. This appears to be due to the strong performance of apartment prices in the Gangnam area. The average apartment sale price in the 11 Gangnam districts was 1.42613 billion KRW, rising for two consecutive months since July (1.41896 billion KRW). In contrast, the average apartment sale price in the 14 Gangbuk districts was 917.88 million KRW, down from last month (919.90 million KRW).

Apartment prices in Gyeonggi-do and Incheon also showed an upward trend. The average apartment sale price in the entire Seoul metropolitan area this month was 713.47 million KRW, marking the first increase in 14 months since June last year (801.55 million KRW).

The average jeonse price, which had been continuously declining, also rebounded this month. In August, the average apartment jeonse price nationwide was 286.82 million KRW, rising for the first time in 14 months since June last year (341.88 million KRW).

Seoul's average jeonse price also rose this month to 571.31 million KRW, the first increase since June last year (677.92 million KRW). The rise in Seoul's jeonse prices was also led by the Gangnam area. The average apartment jeonse price in the 11 Gangnam districts was 654.32 million KRW, up from July (651.14 million KRW), while the average jeonse price in the 14 Gangbuk districts fell to 479.33 million KRW from last month (480.09 million KRW).

Unlike apartments, prices of multi-family houses and villas, including row houses, remain weak. The average sale price (214.44 million KRW) and jeonse price (145.08 million KRW) of row houses nationwide declined compared to July.

This content was produced with the assistance of AI translation services.